Baozun Releases 2025 Chairman Letter

Baozun (NASDAQ:BZUN) published its 2025 chairman letter on April 23, 2026, reviewing strategy and results and setting a 2026–2028 acceleration plan.

Rhea-AI Summary

Baozun (NASDAQ:BZUN) published its 2025 chairman letter on April 23, 2026, reviewing strategy and results and setting a 2026–2028 acceleration plan.

Key metrics: full-year revenue of RMB 9.9 billion (+6%), non-GAAP operating income of RMB 126 million (from RMB 11 million), operating cash flow of RMB 420 million, and BBM revenue of RMB 1.8 billion (+25%). The company targets RMB 550 million non-GAAP operating profit by 2028 and highlights AI adoption and a 36% reduction in Scope 1&2 emissions vs 2021.

Positive

• Non-GAAP operating income improved to RMB 126 million (from RMB 11 million)
• Operating cash flow more than tripled to RMB 420 million
• BBM revenue grew 25% year-over-year to RMB 1.8 billion
• GAP China reached first quarterly breakeven in Q4 2025

Negative

• Group revenue growth was modest at 6% to RMB 9.9 billion
• Target to reach RMB 550 million non-GAAP operating profit by 2028 requires significant execution

Argus Apr 23 session

-4.79% close to close Open Argus

Details

News Market Reaction – BZUN

In the Apr 23 session, BZUN declined 4.79%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement underscores Baozun’s transition from pure e-commerce services toward broader brand...

Analysis

This announcement underscores Baozun’s transition from pure e-commerce services toward broader brand management, citing FY2025 revenue of RMB 9.9 billion, non-GAAP operating income of RMB 126 million, and operating cash flow of RMB 420 million. Management highlights BBM revenue of RMB 1.8 billion and GAP China’s Q4 2025 breakeven, alongside a 36% cut in Scope 1 and 2 emissions since 2021. Investors may track progress toward the RMB 550 million 2028 profit goal and ongoing AI deployment across operations.

Key Figures

FY2025 revenue: RMB 9.9 billion FY2025 revenue growth: 6% Non-GAAP operating income: RMB 126 million +5 more

FY2025 revenue

RMB 9.9 billion

Full-year 2025 revenue grew 6% year-over-year

FY2025 revenue growth

6%

Year-over-year growth for 2025

Non-GAAP operating income

RMB 126 million

Improved from RMB 11 million in previous year

Operating cash flow

RMB 420 million

Annual operating cash flow more than tripled in 2025

BBM 2025 revenue

RMB 1.8 billion

Brand Management revenue grew 25% year-over-year in 2025

Target non-GAAP operating profit

RMB 550 million

Group goal for 2028 under acceleration stage

GAP China breakeven

First quarterly breakeven

Achieved in Q4 2025 after three years of repositioning

Carbon emissions reduction

36%

Scope 1 and 2 reduction vs 2021 base year by 2025

Historical Context

4 past events · Latest: Mar 25

4 events

1. Mar 25

   Earnings results

   24h Move

   +16.4%

   Reported FY2025 revenue growth and sharply higher non-GAAP operating income.

2. Mar 11

   Earnings date notice

   24h Move

   -0.8%

   Announced timing and access details for Q4 and FY2025 results call.

3. Nov 25

   Earnings results

   24h Move

   -5.8%

   Q3 2025 showed modest growth but continuing losses and negative margins.

4. Nov 11

   Earnings date notice

   24h Move

   +0.6%

   Set date and logistics for Q3 2025 earnings release and conference call.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

non-gaap, operating cash flow, scope 1 and 2 carbon emissions, ai

4 terms

non-gaap financial

"non-GAAP operating income improved significantly to RMB 126 million from RMB 11 million"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

operating cash flow financial

"annual operating cash flow more than tripled to RMB 420 million"

Operating cash flow is the amount of money a company earns from its main business activities, like selling products or services. It shows how well the company can generate cash to pay bills, invest in growth, or return money to shareholders. This figure helps investors understand if the company’s core operations are healthy and sustainable.

View in glossary

scope 1 and 2 carbon emissions technical

"We achieved a 36% reduction in Scope 1 and 2 carbon emissions against our 2021 base year"

Scope 1 and Scope 2 carbon emissions categorize a company's greenhouse gas output: Scope 1 covers direct emissions from sources the company controls (like fuel burned on-site or company vehicles), while Scope 2 covers indirect emissions from purchased energy (such as electricity or steam). Investors use these measures like a carbon balance sheet—showing where emissions come from, which helps judge regulatory, cost and reputational risks, compare firms, and track progress on reduction targets.

ai technical

"we are ambitious to deploy AI into a lot aspects of our business"

Artificial intelligence (AI) is technology that enables machines to mimic human thinking and learning, allowing them to analyze information, recognize patterns, and make decisions. For investors, AI matters because it can improve how businesses operate, create new products, or identify opportunities faster and more accurately than humans alone, potentially impacting company success and market trends.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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SHANGHAI, April 23, 2026 /PRNewswire/ --

Dear Shareholders:

First of all, this is a letter I write to you by myself, and it's a pure human writing without any involvement of AI (though yes I use AI everyday for a lot of things). As a company,  we are ambitious to deploy AI into a lot aspects of our business to make it more efficient and intelligent, but when communicating with our customers, colleagues and investors, the human approach is what we choose. Thanks to all investors for your trust in the past and please keep trusting us going forward!

Three years ago, along with our takeover of GAP China, we started to execute our new strategy which is to extend our Brand E-commerce business into Brand Management business. It's a great and bold leap since our experiences are limited. Coming through all the challenges and even those mistakes we made, we are happy to see that we completed the first phase of our transformation very successfully.

To summarize 2025, we see:

Solid Completion of the First Stage of Strategic Transformation

Take a look at the financial results. Full-year revenue grew by 6% to RMB 9.9 billion, non-GAAP operating income improved significantly to RMB 126 million from RMB 11 million the previous year, and annual operating cash flow more than tripled to RMB 420 million. Of course, a dedicated day-to-day management of the business contributes to these great results but more importantly, the formation, development and refinement of the strategy, start to contribute more and more. This gives the head room for the company to grow in coming years. This is the true potential of our renovated business model.

Throughout the year, Baozun e-Commerce ("BEC") kept stable and strong in sales profitability and cash flow, thanks to its great execution and cost management. Why the existing business can be still this healthy? Because we shifted our priorities from pursuing scale to profitability through margin expansion, cash generation and strengthening alignment with BBM.

BBM gained even stronger momentum in 2025. Full-year revenue grew 25% year-over-year to RMB 1.8 billion, showing the long-term potential of our brand management platform. Notably, after three years of repositioning and localization, GAP China achieved its first quarterly breakeven in the fourth quarter of 2025! And it's still  keeping a great momentum entering into 2026. It's a big win since it tells that the strategy is correct, and our execution is powerful. It give us more courage and confidence in delivering future results looking into the coming new state of 2026 to 2028.

2026-2028: Acceleration Stage of Our Strategic Transformation

Based on the established strategic and business model, we are now ready to accelerate. We aim to keep expanding BEC profit margins, building up scale and developing leverage with BBM. We now have a clear goal: to grow the group's non-GAAP operating profit to RMB 550 million by 2028. Here is how.

BEC will focus on quality, margin and efficiency, which means customer centricity, better service quality, and better margin. Meanwhile, keep utilizing technology and more-recent development and adoption of AI to make possible a much higher effectiveness and process efficiency. Learning and adopting experiences, practices and skillsets also serve these purposes.

BBM will keep focusing on accelerating scale, especially for existing brands. We'll keep active in looking for new brands, but we will be very selective. So, the growth of BBM will majorly rely on more organic aspects.

Now BEC and BBM have been into their positions, then we see a lot of major opportunities in between! By leveraging both BEC and BBM expertise and capabilities, we will be trying to help more of our brand partners turn-around their business or make them more successful. For brands business in China, it now can win big if and only if, they can manage well both online and offline channels, while fully localizing across product design, manufacturing, merchandising and supplying, and utilizing an effective marketing method, among other things. Yes, it's difficult. And it's what we have been focused on the past several years with great efforts.

Role of Technologies

Our vision, "Technology Empowers Future Success", reflects how important technology is to brands success. The solid software, data and security infrastructure we have been building up in the past two decades is valuable for both BEC and BBM businesses. We are actively adopting AI industrial achievements into our array of technical systems. Several AI-powered tools are now deployed including voice of consumer, demand data analytics, supply chain management, demand forecasting, creative content production, and marketing automation. By combining the classical infrastructure and recent-developed AI models, agents and practices, we are confident to add leading edges to ourselves and making us a true beneficiary of Technology developments, especially when compared to industry peers.

Sustainability

As our business evolves, we remain committed to responsible and sustainable development. In 2025, we advanced our environmental initiatives by reducing carbon emissions across our operations and strengthening sustainability standards throughout our logistics and supply chain networks. We achieved a 36% reduction in Scope 1 and 2 carbon emissions against our 2021 base year, keeping us on track to meet our commitment of a 50% reduction by 2030.

Equally important to what we offer is our people. Our success is built on an ambitious and dedicated team. We will keep striving for quality of our products and services delivered to our target clients and customers, while making every experience of our colleagues worthwhile. We believe these two elements are instrumental to delivering returns for our investors.

Finally, on behalf of the Board, I thank our employees, partners, customers, and shareholders for your continued trust and support. The progress achieved over the past three years belongs to you, and us. Please keep supporting us and I am confident in what Baozun will achieve in the years ahead.

Sincerely,

Vincent Wenbin Qiu
Chairman and Chief Executive Officer
Baozun Inc.

About Baozun Inc.

Founded in 2007, Baozun Inc. is a leader in brand e-commerce service, brand management, and digital commerce service. Baozun Inc. comprises three major business lines – Baozun e-Commerce (BEC), Baozun Brand Management (BBM) and Baozun International (BZI) and is committed to accelerating high-quality and sustainable growth. Driven by the principle that "Technology Empowers the Future Success", Baozun's business lines are devoted to empowering their clients' business and navigating their new phase of development.

For more information, please visit http://ir.baozun.com.

For investor and media inquiries, please contact:

Baozun Inc.
Ms. Wendy Sun
Email: ir@baozun.com

View original content:https://www.prnewswire.com/news-releases/baozun-releases-2025-chairman-letter-302751572.html

SOURCE Baozun Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Baozun's reported full-year 2025 revenue and non-GAAP operating income (BZUN)?

Baozun reported RMB 9.9 billion in full-year 2025 revenue and RMB 126 million non-GAAP operating income. According to the company, operating cash flow rose to RMB 420 million, up more than threefold year-over-year.

How did Baozun's BBM segment perform in 2025 and what was GAP China's result (BZUN)?

BBM revenue increased 25% to RMB 1.8 billion in 2025. According to the company, after repositioning, GAP China achieved its first quarterly breakeven in Q4 2025 and continued momentum into 2026.

What is Baozun's financial target for 2028 and what does it mean for investors (BZUN)?

Baozun targets RMB 550 million in non-GAAP operating profit by 2028. According to the company, this target underpins an acceleration stage focused on margin expansion, AI adoption, and BBM scale growth from 2026–2028.

What technology and sustainability initiatives did Baozun highlight in the 2025 chairman letter (BZUN)?

Baozun emphasized deploying AI across demand forecasting, supply chain, marketing, and content production. According to the company, it also cut Scope 1 and 2 emissions by 36% versus 2021, aiming for a 50% reduction by 2030.

How did Baozun describe its strategic focus for 2026–2028 and implications for BEC and BBM (BZUN)?

The company said 2026–2028 will be an acceleration stage focusing on BEC margin expansion and BBM organic scale. According to the company, it plans selective brand additions and stronger BEC–BBM synergies to drive profit growth.